Insolvent German charter carrier Aero Lloyd could resume flying this week, but its long-term survival will probably mean cutting half its 1,400-strong workforce, the official administrator warns.
Bayerischer Landesbank, which owns 66% of the airline, agreed last week to provide €5 million ($5.8 million) emergency funding, which will allow two of its 21 Airbus A320 family aircraft to start flights again by the end of this week. The bank forced Aero Lloyd's grounding on 16 October by cutting off its funding supply, saying the risk of keeping the airline operating without restructuring was too great. Aero Lloyd is negotiating with customers to revise contract terms.
Insolvency administrator Dr Gerhard Walter believes the airline will need to reduce its fleet to 12 aircraft and halve its workforce. The €5 million will keep it operating to year-end, but future survival will depend on cost cuts, restructuring and its ability to reassure customers that it will not stop flying again, the airline says.
Source: Flight International
